The Reserve Bank of Australia's (RBA) decision to lower the interest rate to a historic low of 1% sparked an immediate market reaction as major banks announced a reduction in their home loan rates .
AMP Bank, Bendigo Bank, MyState Bank, Citibank and P & N Bank were the last non-majors to have reduced their rates.
AMP announced a 0.20% reduction in all variable rate home loans and a reduction in its two- and three-year fixed rate loans up to 0.53% effective 22 July.
"We run our business in a very active market, and such decisions are scrutinized with care and thoroughness. We remain committed to providing competitive rates to our new and existing customers, and (our) decision has been influenced by a continued increase in costs as well as the desire to reconcile the interests of homeowners and savers, "he said. said Sally Bruce, CEO of AMP,
.
Bendigo Bank reduced the variable rates of its owner-occupied home loans by 0.20% and the rate of its investment loans by 0.15% as of July 29th.
MyState Bank also announced a 0.20% reduction in its variable home loan rates for borrowers paying principal and interest, as well as a 0.10% discount for borrowers paying interest only.
"With rates as low as this country has ever seen before, such decisions are difficult to make. We believe this combination of price changes provides a balance of results for both savers and borrowers, "said Tony MacRae, General Manager of Banking Services at MyState Bank.
Citibank and P & N Bank also lowered their rates.
Citibank reduced its rates by 0.18% on all variable rate residential mortgage products, as well as by 0.18% on lines of credit. While P & N has reduced its rate up to 0.18% for new and existing customers who have taken out a home loan.
As a result of the RBA's decision, about 50 lenders reduced their mortgage lending rates, with the smaller credit providers passing on the total 0.25% reduction.
Top suburbs:
Mortdale
,
St Mary
,
revesby hts
,
higher kedron
,
Redcliffe
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